Productive and Inclusive Net Zero (PRINZ) - Opportunities and barriers in the transition to sustainable and equitable growth

This project explores the link between productivity and two important government priorities: phasing out greenhouse gas emissions (net zero) and improving economic prospects at the regional level (levelling up). Bringing these objectives together emphasises that the UK's productivity challenge is as much about the quality of economic growth as it is about the amount of growth. The project takes a strongly empirical approach. Using granular datasets and case study evidence, we seek to identify the productivity risks and opportunities that arise from net zero at the national, regional and sectoral level. These insights are then used to formulate pertinent policy interventions for clean, equitable productivity growth. To do this, we explore the main drivers of clean and equitable productivity growth: - Innovation: Both productivity growth and the net zero transition depend on innovation. We examine how changes in country-level emissions and/or emission intensities are related to clean innovation for different technology categories. - Jobs and skills: The coming decades will see far-reaching shifts in the demand for skills. We shed light on the quantity and quality of the new jobs that are being created and those that are at risk, and the extent of job re-allocation that may occur as part of the net zero transition. - Finance: Net zero requires an overhaul of the nation's capital stock, creating an opportunity to rebalance regional patterns of growth. We explore to what extent credit constraints pose a potential barrier to regional decarbonisation and productivity growth. The project adopts a broad, multi-disciplinary perspective, nested in the social sciences. It features statistical analysis, qualitative social science methods and mathematical modelling as well as insights from innovation, finance, education, labour market and climate change policy. The team is located in business schools, economics departments, geography departments, environmental research centres and innovation think tanks. The emphasis is on impact-oriented research, which combines state-of-the-art analysis with continuous engagement with decision makers throughout the project. In doing so, the project can leverage the close links of all project partners within both national and local government. The project brings together an experienced team of researchers with different disciplinary skills and backgrounds. The core team is supported by a wider group of often very senior researchers, whose insights are leveraged into the project as in kind contributions. They will be joined by a team of early career researchers, who will work across topics and partner organisations. We believe that this makes the project exceptional value for money. To make the structure work, we have established a tight, but lean project management structure with a strong PI and clear responsibilities for module leads and Co-PIs. Importantly, part of the team has a long history of working together over many projects, which ensures cohesion and reduces delivery risks. At this project establishes a number of new connections between researchers and research institutions that have previously not collaborated. We expect that this is an opportunity to trigger new insights and mutual exchange of ideas that will be fruitful beyond the lifetime of this project. For some members of the research team it is also the first time to contribute their considerable expertise in other fields to the issue of climate change and the Net Zero transition. Given the pervasiveness of the climate change issue this is a very welcome aspect.